Sikkim joins UDAY scheme as 22nd state ; to get Rs 207crore benefit

 Sikkim has signed a Memorandum of Understanding (MoU) with the Centre to become the 22nd state to join government’s power distribution revival scheme Ujjwal Discom Assurance Yojana (UDAY) and it is likely to derive a net benefit of Rs 207 core.

The state will gain from the scheme by way of cheaper funds, reduction in AT&C losses and transmission losses, interventions in energy efficiency etc during the period of a turnaround.

The reduction in AT&C losses and transmission losses to 15 per cent and 3.50 per cent respectively is likely to bring additional revenue of around Rs. 179 crores, an official release said.

“AT&C losses and transmission losses would be brought down through compulsory distribution transformer metering, consumer indexing and GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, feeder audit etc., besides eliminating the gap between the cost of supply of power and realization,” the release said.

Demand-side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans and air-conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the State of Sikkim. The gain is expected to be around Rs 25 crores.

“While efforts will be made by the power distribution department of the state to improve their operational efficiency, and thereby reduce the cost of supply of power, the central government would also provide incentives to the state government for improving power infrastructure in the state and for further lowering the cost of power,” the release said.

The release further said, with improved efficiency, the state power department would be in a better position to borrow funds at cheaper rates for power infrastructure development/improvement in the state.



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